EU considers Panama, S Korea for tax haven blacklist

BRUSSELS - European Union ministers haggled over a credible blacklist of non-EU tax havens, with about 10 countries including Panama and South Korea in danger of being publicly chastised for facilitating tax evasion.

Other jurisdictions are understood to have been given leeway after suffering severe damage during hurricanes in the Caribbean earlier this year.

EU Economic Affairs Commissioner Pierre Moscovici said this was less than the 20 countries he had hoped for but would be a “initial victory” if confirmed.

Senior officials from member states have whittled down an initial draft of 29 countries, with divisions still strong in recent days on who will make the final version. Moscovici said the EU ministers would also approve a so-called grey list of about 60 countries comprising of jurisdictions with severe tax evasion issues, but who have made commitments to change their ways. “I invite the member states to not be naive and keep pressure on the third countries to stay on course,” he said as he arrived for the talks in Brussels.

Enforcement is the biggest problem, with EU countries split over whether blacklisted countries should be subjected to financial sanctions or if the list is shaming enough itself.